5.1 5.1.1 Calculate the following ratios for 2021 only. Express the answers to two decimal places. Inventory turnover 5.1.2 Creditors payment period 5.1.3 Return on equity 5.1.4 Debt to assets 5.1.5 Price/Earnings ratio 5.1.6 Acid test ratio 5.1.7 Dividend yield 5.2 Comment briefly but meaningfully on the following ratios (comparative figures are provided in brackets): Gross margin (2021: 51.21%; 2020: 60.45%) 5.2.1 5.2.2 Current ratio (2021: 1.20:1; 2020: 1.07:1) 5.2.3 Return on assets (2021: 25.56%; 2020: 30.42%) ROLEX LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021 Sales Cost of sales Gross profit Selling and administrative expenses Operating profit Interest expense Profit before tax Company tax Profit after tax STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Non-current assets Property, plant and equipment Investments R 4 140 000 (2 020 000) 2 120 000 (840 000) 1280 000 (80 000) 1 200 000 (320 000) 880 000 2021 (R) 2020 (R) 3 740 000 2 940 000 3440 000 2 940 000 300 000 0 Current assets Inventories Accounts receivable Cash and cash equivalents Total assets 1 080 000 900 000 480 000 500 000 510 000 320 000 90 000 80 000 4 820 000 3 840 000 EQUITY AND LIABILITIES Equity 3 120 000 2 600 000 Ordinary share capital 2 000 000 2 000 000 Retained earnings 1 120 000 600 000 Non-current liabilities 800 000 400 000 Long-term loan 800 000 400 000 Current liabilities 900 000 840 000 480 000 560 000 Accounts payable Company tax payable 160 000 80 000 Dividends payable 260 000 200 000 Total equity and liabilities 4 820 000 3 840 000